Target Market for Future Residents and Tenants The target market for infill residential in the activity nodes along East Berry is as diverse as the unit types that could be incorporated into these areas. The target market includes existing and new residents of the corridor like younger adults seeking a starter home, small families that might be attracted to nearby amenities, to older adults that want to age in place while downsizing to a smaller, more modern house. In the case of the Miller/Eastland sample area, enhanced accessibility to the elementary school will be particularly attractive to young families. Developing infill housing that supports all income ranges not only provides greater variety of housing options, but helps develop mixed-income neighborhoods. This also affords economic mobility for existing residents of the corridor who may desire a change in their residence that corresponds to their changing life stages. Similarly, new housing-related investments should benefit current residents, and seek to mitigate any potential displacement created. Non-residential tenants will be heavily neighborhood serving, including smaller convenience stores, pharmacies, or dining options, to professional service office tenants that are seeking locations convenient to customers. For all target resident and commercial tenants, price points will be sensitive. Current Market Considerations Residential price points along the East Berry corridor are lower when compared to the larger Fort Worth region. Home values are $222,000 in the larger study area, compared to $330,000 for the larger region. With 52.8% of the housing units being owner- occupied, the neighborhood nodes represent important opportunities to incorporate for-sale housing units along the corridor. Sales prices for residential units since 2010 have typically ranged from $150,000 to $200,000 and rental rates average less than $900 per month. Constructing new residential options will likely require higher price points than what currently exists along East Berry or will need gap financing. It should be noted that the lower land values (on average) along the East Berry corridor can be a positive when attracting developers to the area. Comparatively, base investment costs to control the land are more affordable in this area, reducing overall risk for the developer. With a lower barrier to entry, infill residential in this area could be attractive to smaller developers or investors, increasing the pool for potential activity. The resulting increase in supply will create a variety of price points that can create attainability for residents of many income levels. As previously noted, the current vacancy rate for retail buildings along the East Berry corridor is estimated at less than 1.0%. For both retail and small-scale office spaces, price points will be highly sensitive, with current lease rate averages well below current construction cost targets to achieve an optimal return on investment.
176 | East Berry Corridor Study
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